The U.S. Securities and Exchange Commission has delayed decisions on the Canary spot PENGU ETF and the Grayscale spot Cardano ETF. This marks another pause in the approval process for U.S. exchange-traded funds that provide direct exposure to cryptocurrency prices.
The applications aim to expand mainstream participation in crypto investing. However, regulators have chosen to extend the review period to assess the proposed ETFs further. This move highlights the SEC’s continued caution with crypto-based financial products.
SEC Extends Review Process
This recent delay echoes earlier actions by the SEC regarding similar crypto ETF proposals. According to the formal SEC notice, officials need more time to examine issues related to market stability and investor protection.
Regulators are reviewing whether crypto-linked investment vehicles, especially those involving Cardano (ADA) and PENGU, comply with legal and financial standards. Central to this assessment are requirements for transparency, fair valuation, and preventing potential market manipulation.
The next SEC deadline for the PENGU ETF is October 12, 2025. The agency will determine whether to approve, disapprove, or further extend the deadline.
However, for the Grayscale Cardano ETF, October 26, 2025 is the final 19b-4 deadline. The SEC must issue an approval or disapproval order by then. It cannot further extend the deadline.
The SEC’s notice explains that extending the review period is standard when additional analysis is necessary or when more information from applicants or the public is needed. This process is consistent with approaches taken for earlier cryptocurrency-related applications. Many market analysts hoped for a quicker decision, but the SEC’s schedule remains in line with past actions.
Evaluating Market Readiness for Crypto ETFs
Industry observers have paid close attention to both the Canary and Grayscale filings, viewing them as indicators of progress in mainstream crypto adoption. These ETFs would allow U.S. investors to buy shares tied to the spot price of digital assets without direct ownership.
For the Grayscale Cardano ETF, the SEC’s filing details how the fund would operate, its listing requirements for NYSE Arca, and the necessary layers of market surveillance. The document also covers asset custody, price calculation, and ongoing compliance.
Neither official notice contains direct statements from SEC officials. Instead, the documents emphasize the need to address market readiness and regulatory concerns as these asset classes approach broader access for the public.
Impact on Investors and the Crypto Sector
The postponement indicates that U.S. regulators are carefully assessing risks linked to new digital asset products, despite increasing interest in spot crypto ETFs. Investors and industry representatives argue that these ETFs could make cryptocurrency more transparent and accessible. Still, the SEC’s extended review means product launch dates remain uncertain.
Meanwhile, applicants like Canary and Grayscale must wait for the regulatory process to finish. Future decisions will depend on how the market evolves and on updated information. For now, the official notice and the Grayscale ETF application illustrate the careful approach regulators are taking before introducing new crypto investment products to the market.
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Source: https://beincrypto.com/sec-delays-crypto-etfs-decision/